Singapore-based Bitcoin miner Bitdeer has liquidated its entire BTC funds, abandoning the industry standard holding strategy.
The major move comes as mining profitability plummets, forcing the company to restructure debt and accelerate its AI transformation.
On February 20, the cryptocurrency mining company disclosed that it held zero Bitcoin, completely depleting its reserves. Notably, this does not include its customer deposits.
The company confirmed that it had sold all of its recent production of 189.8 Bitcoins and announced a significant net reduction of 943.1 Bitcoins.
Indeed, the aggressive sell-off highlights the deepening crisis facing operators caught in a severe squeeze on profits.
The winter storm in the United States caused the outage of domestic mining machines, leading to a temporary recovery of the Bitcoin network. Subsequently, the Bitcoin network experienced a rapid V-shaped recovery.
Network difficulty surged 14.7% this week. This is the biggest hike since May 2021, erasing the operational relief experienced by miners earlier this year.
As a result, mining profitability, as measured by hash price, plummeted below $30 per Petahash per day. This key metric is currently several inches above all-time lows, leading to higher production costs.
To weather the storm, Bitdeer turned to Wall Street to fund its foray into artificial intelligence.
On February 20, the company announced the expansion of a $325 million private placement of convertible senior notes.
